In this article, we have covered the highlights of global market news about the XAG/USD, AUD/USD, USD/RUB and GBP/JPY.
Analysis of the XAG Price: XAG/USD holds gains towards the mid-$18.00s but is still in trouble.
On Tuesday, XAG began to trend upward and, at least temporarily, seemed to have ended a two-day losing run. Through the early European session, the white metal held onto its little intraday gains and was last seen circling the day high, in the mid-$18.00 range.
Looking at the bigger picture, the XAG/USD has been fluctuating in a well-known range during the last one to a half weeks. The rangebound price movements might be characterized as a bearish consolidation phase given the recent decline from mid-$22.00s or the June monthly high.
Additionally, multiple failures around the $19.00 round number raise the possibility that the short-term selling bias is still alive. Additionally, oscillators on the daily chart maintain strong bearish positions and support the pessimistic picture.
Consequently, a further increase might still be seen as a selling opportunity around the $19.00 level. The XAG/USD might rise higher with some follow-through purchasing, but the momentum is expected to be restrained at the $19.40–$19.50 area of solid supply.
XAG/USD might decline to $17.45-$17.40 before hitting $17.00. Spot prices might drop to $16.70-$16.60 if the gloomy trend continues.
AUD/USD Price Analysis: After breaking above 200-EMA, it moves toward 0.7000
In the early London session, the AUD/USD pair fluctuated in a constrained range between 0.6955 and 0.6966 after a downward move from an intraday high at 0.6980. After failing to maintain above Friday’s high of 0.6977, the asset has seen a sharp decline. The upward trend hasn’t yet reversed, however.
In four hours, the asset has easily positioned itself above the 38.2% Fibonacci retracement at 0.6920 (located between the high on June 3 at 0.7283 and the low on July 14 at 0.6680). The major has again failed to touch the 0.6984 level, corresponding to the second 50% Fibo retracement.
Additionally, the upward filters are strengthened by a break above the 200-period Exponential Moving Average (EMA), which is at 0.6900. The 20 and 200 EMAs at 0.6903 form a bull cross, indicating more gains.
Additionally, the Relative Strength Index (RSI) (14) has moved into the positive zone of 60.00-80.00, indicating that the bullish momentum will continue.
USD/RUB sellers assault 58.00 on Russian supply cut worries and a weaker USD
Around 57.80, down 1.15 percent intraday going into Tuesday’s European session, USD/RUB reverses the week’s early gains. In doing so, the US dollar’s downturn and the recent increase in oil prices are cheered by the Russia ruble (RUB) pair.
However, the US Dollar Index (DXY) shows a four-day downturn and has reduced intraday losses to around 106.40 at the time of publication. It’s important to note that the US dollar looks to be supported by a recovery in US 10-year Treasury rates, which are down 2.8 basis points around 2.79 percent, to consolidate recent losses.
Fears of a US recession and lately depressed US PMIs and secondary activity indicators may be to blame for the US dollar’s recent fall. The global rating juggernaut Moody’s recently reduced the US and Eurozone’s growth projections. The DXY is under pressure due to the preparations made by dollar traders for the Federal Open Market Committee (FOMC) meeting on Wednesday.
GBP/JPY Price Analysis: Inverse H&S entices bulls; 165.00 is the key
GBP/JPY has fallen to 164.70 ahead of Tuesday’s London trade as it fights to keep buyers at the table. However, the quotes continued trading above the 50-HMA, and the weekly inverse head-and-shoulder (H&S) bullish formation worked together to stave off the bears.
However, the cross-currency pair’s upward movement depends on the neckline of the aforementioned bullish pattern, which is located around 165.00. The hypothesis predicts a run-up towards the swing high in late June, which is about 167.00, with the monthly top of 166.25 serving as a temporary pause.
It’s essential to remember that the top reached on June 22 at around 167.85, and the recent monthly high of 168.75 might challenge GBP/JPY buyers who have moved beyond 167.00.
On the other hand, a pullback is challenging to achieve until the quotation continues above the 50-HMA, around 164.10.
The latest swing low around 163.00 and the monthly low of 160.40 might perhaps tempt sellers of the GBP/JPY. The psychological magnet, worth 160.00, also serves as a downside filter.
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